Staying Focused

RAYMOND MCMANUS, President & CEOLaurentian Bank of Canada

January 2006

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Laurentian Bank: an Overview

� Founded in 1846� 3rd largest financial institution in Quebec in terms of

number of branches� 7th largest Canadian Schedule 1 chartered bank� Balance sheet assets: $16.5 billion (as of October 31, 2005)

� Assets under administration: $13.8 billion (as of October 31,2005)

� Number of branches: 158� Number of full-time equivalent employees: 3,200

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Specialtransactions

initiated sinceQ4 03 have

createdshareholder

value by givingthe Bank the

means tobetter

implement itsPlan andmaintain

strong capitalratios

Major Achievements2003-2005

B2B Trust PrivatizationQ3 04

Sale of 57 Branches Outside QuebecQ4 03

Sale of BLC - Edmond de Rothschild &Distribution Agreement with Industrial Alliance

Q1 05

Q2 05 Final Settlement of Collective Agreement

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Laurentian Bank ’s Focus

� Laurentian Bank’s main market is Quebec

� With 158 retail, 20 commercial and 13 brokeragebranches, Quebec is LBC’s main market. All ourbusiness lines are active in this market.

� A performing player across Canada

� In the sectors and markets in which LBC excels andhas a competitive edge, that is B2B Trust, CommercialFinancial Services and our indirect points-of-salenetwork, Laurentian Bank Securities as well asmortgages and deposits through brokers.

�36% of LBC’s total loans are outside Quebec

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Four Business Lines

LBCLBC

Retail Financial Services

Retail Financial Services B2B TrustB2B TrustCommercial Financial

ServicesCommercial Financial

Services

�� Provider of financialProvider of financialproducts forproducts forindependent financialindependent financialadvisors, planners andadvisors, planners andbrokersbrokers

�� Leader in self-directedLeader in self-directedRSP’sRSP’s

�� Distribution agreementsDistribution agreementssigned with financialsigned with financialintermediariesintermediaries

�� Relationship bankingRelationship bankingapproachapproach

�� Business: small andBusiness: small andmid-market, real estatemid-market, real estateand farm producersand farm producers

�� QuéQuébecbec: present in all: present in allsegmentssegments

�� Ontario: present inOntario: present inreal estate and mid-real estate and mid-marketmarket

�� Branch network -Branch network -Québec onlyQuébec only

�� 33rdrd position in position inQuéQuébecbec in terms of in terms ofnumber of branchesnumber of branches

�� Point-of-salesPoint-of-salesacross Canadaacross Canada

Laurentian Bank Securities

Laurentian Bank Securities

�� InstitutionalInstitutionalfixed incomefixed income

�� Full-serviceFull-serviceand discountand discountbrokerbroker

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Highlights 2005Highlights 2005versus 2004versus 2004

GAAP GAAP2004 2005 Change

Increase in net interest income $267.2M $325.7M $58.5.M

NIM improvement 1.64% 1.99% +35 b.p.

Efficiency ratio improvement 79.3% 76.1% +320 b.p.

Higher EPS from continuing operations $1.33 $2.26 +$0.93

Higher ROE from continuing operations 4.6% 7.8% +320 b.p.

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2005 Performance and2006 Objectives

(1) PCL ratio is calculated over Average Assets

Performance Measure 200512 Months Period Ended

October 31, 20052006

Annual Target Actual Objectives

Return on Equity 7.8%

(6.4% from continuing operations)

Earnings per Share $2.26

($1.85 from continuing operations)

Total Revenue $480M to $490M $502M $522M to $532M

Efficiency Ratio 79% to 77.5% 76.1% 75% to 73.5%

Capital Ratios

- Tier 1 Min of 9.5% 10.2% Min of 9.5%

- Total Min of 13.0% 12.3% Min of 12.0%

Credit Quality (PCL Ratio)1 0.25% to 0.22% 0.24% 0.25% to 0.22%

4.5% to 5.5%

$1.30 to $1.60

7% to 8%

$2.05 to $2.35

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Bank’s NIM MajorImprovement

For P&C NIM:Includes Retail & Commercial Services but not B2B Trust and is calculated on average assetsExcluding Scotia (reported numbers only based on average earnings assets)Excluding TD (only P&C average loans available)For 2000 and 2001, excluding NBC (P&C average assets not reported)

Net Interest Margin

1.64%

1.94%

2.13%1.99%

1.85%1.86%1.79%1.89%

1.85%1.89%

1.72%

2.00%

2000 2001 2002 2003 2004 2005

LBC

Avg 6BKS

P&C Net Interest Margin

3.00%

2.46%2.51%2.61%2.30%

3.09%

2.87%

3.05%3.08%3.20%3.14%

2.81%

2000 2001 2002 2003 2004 2005

LBC

Avg 4BKS

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Diversification ofLoan Portfolio

Loan Portfolio Mix

At October 31st, 2005, 36% of our loan portfolio wereoriginated from outside of Quebec.

Our loan portfolio is diversified geographically and by loantypes.

Loan Porfolio As of October 31, 2005

Personal Loans33%

Residential Mortgages

49%

Commercial Mortgages

5%Commercial

Loans13%

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Loan and Deposit Growth

In millions of dollars 2005 vs 2004 2005 vs 2004

LoansPersonal 268.3 7%Residential mortgages* 469.8 8%Commercial mortgages* -29.1 -4%Commercial and acceptance -2.1 0%Total Loans 707.0 6%

DepositsPersonal 121.0 1%Business and other 664.9 27%Total Deposits 785.9 6%

* Residential mortgage loans, excluding securitized loans, grew by $298M or 5% in 2005* Commercial mortgage loans, excluding securitized loans, decreased by $8M or 1% in 2005

Growth Growth %

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Credit Quality Remains Stable

� In Q4 2005, grossimpaired loans havedecreased 4%compared with Q42004

� Since Q3 2004,provisions continueto exceed ourimpaired loans

Gross Impaired Loans as a % of Gross Loans, BA’s & ReverseRepos

Net Impaired Loans as a % of Net Loans, BA’s & Reverse Repos

0.97%1.06%1.50% 1.33% 1.13%

1.00%1.01% 0.95%0.92%

Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05

0.18%

0.08%

-0.07%-0.05%-0.10%-0.05%0.01%

-0.04%-0.03%

Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q305 Q405

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Strong Capital Ratios

As of October 31st, 2005

in % Rank in % Rank

Scotia 11.1% 1st 9.3% 1stBMO 10.3% 2 nd 7.9% 2 nd

LBC 10.2% 3rd 7.5% 3rd

TD 10.1% 4th 7.4% 4th

RBC 9.6% 5th 7.4% 5th

NBC 9.6% 6th 7.4% 6th

CIBC 8.5% 7th 6.1% 7th

Aver. Big 6 9.9% 7.6%

Tier 1 Capital Ratio Tangible Common Equity as a % of

RWA

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Total Capital Ratio

Before the issuance of new debenture

As of October 31st, 2005

in % Rank

Scotia 13.2% 1stTD 13.2% 2 nd

RBC 13.1% 3rd

NBC 12.8% 4th

CIBC 12.7% 5th

LBC 12.3% 6th

BMO 11.8% 7th

Aver. Big 6 12.8%

Total Capital Ratio

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Capital Structure

As of October 31, 2005

In millions of dollars

Debentures 150

Preferred Shares 210

Common Equity 703

Total Capitalization 1,063

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Credit Ratings

DBRS S&P

Short-Term Instruments R-2 (high) A-2

Long-Term Deposits and BBB BBBSenior Debt

Subordinated Debentures BBB (low) BBB-

Non-Cumulative P-3 BB+Preferred Shares

Rating Outlook Stable Negative

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Laurentian Bank’sLiabilities

As of October 31st, 2005

LBC Average Big 6

Personal 77.2% 34.3%

Business and other 22.8% 58.6%

Total of deposits 100.0% 100.0%

Composition of deposits

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Laurentian Bank’sStrengths

� Conservative financial position

� Strong balance sheet and capital ratios� Strong proportion of insured mortgages� Limited capital market exposure compared to peer group� Large proportion of personal loans secured

� Strategic focus and flexibility

� Selective regional positioning� Niche and partnership approach� Experienced management team and committed

employees� Quality and efficiency of our products and services

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Conclusion

� We have adopted a very focusedstrategy and we intend to continueto build on our accomplishments

� The Bank and the Union areworking closely together to makethe Bank a stronger #3 in Quebecand a performing player in specificmarkets across Canada

� Our confidence in the future restson the fact that our employeesbelieve in the plan and are fullycommitted

“ The strongcommitment anddedication of allour employeeswasinstrumental tothisperformance...

Our objectivesfor 2006 assumethat we willmaintain themomentumgoing forward.”Raymond McManus

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Forward LookingStatements

This presentation and related communications may contain forward-looking statements, includingstatements regarding the business and anticipated financial performance of Laurentian Bank. Theseforward looking-statements include, among others, statements regarding the business and objectivesfor the coming years, medium- and long-term strategies to achieve these objectives and statementswith respect to the Bank’s beliefs, plans, expectations, anticipations, estimates and intentions. Thesestatements typically use the conditional and words such as prospects, believe, estimate, forecast,project, should, could and would. By their very nature, forward-looking statements involve inherent risksand uncertainties, and it is possible that the forecasts, projections and other forward-looking statementswill not be achieved. The Bank cautions readers against placing undue reliance on these statementswhen making decisions, as the actual results could differ appreciably from the opinions, plans,objectives, expectations, forecasts, estimates and intentions expressed in such forward-lookingstatements due to various material factors. These factors include, among other things, capital marketactivity, changes in government monetary, economic and fiscal policies, changes in interest rates,inflation levels and general economic conditions, legislative and regulatory developments, competition,credit ratings, scarcity of human resource and technological change, as well as the Bank’s success atincreasing revenues and managing costs related to carrying out its business plan. The Bank cautionsthat the foregoing list of factors is not exhaustive. The Bank does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.

For questions on this presentation, please call:Gladys Caron, Vice-President, Public Affairs, Communications andInvestor Relations

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4 Lines of Business

1. Retail Financial Services:� 3rd position in Quebec in terms of number of branches - we are focussing our retail

expansion strategy in this region� Leader in point-of-sale financing across Canada� Strategies and actions:

� Launching of the Entrepreneurship model starting in 2003� Building on culture of high quality of service� Re-investments in our physical assets and in the development of our human

resources� Marketing activities� Partnerships, alliances and contracts (Espresso Bank-Café with Van Houtte,

Industrial Alliance, FTQ, Western Union, exclusive banking ABMs in MontrealMetro )

2. Commercial Financial Services:� Commitment to Relationship Banking where the Bank provides core financial

services to small and medium-sized businesses, real estate promoters and farmproducers

� In Quebec, our goal is to be present in all segments of the market

� Outside Quebec, we are a niche player in specific fields of expertise (SME’S andreal estate)

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4 Lines of Business

3. B2B Trust:� Provider of financial products and services designed to be marketed either

by independent financial advisors or by distributors under their privatelabel

� A leader in the administration of Self-Directed RSP’s and a leading supplierin broker deposits

� Main portfolios:

� $4.6 billion through deposit brokers

� $1.2 billion in investment and RRSP loans

� $1.1 billion in brokered mortgages

� More than 40 distribution agreements signed with financial intermediaries

4. Laurentian Bank Securities:� Main 3 sectors: full-service broker, discount brokerage and institutional

fixed income

� AUM: $1.4 billion for full-service broker and $78 million for discountbrokerage

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Sale of BLC-Edmondde Rothschild

• Transaction completed during the first quarter of 2005 (December 31st, 2004)

• Recovery clauses

� Claw-backs:

– 5-year period

– $ 5.2 M / year if annual net sales do not reach $ 50 M for a maximum of $ 26.2 M

– Catch up provision, provided cumulative net sales reach $ 290 M at year 6

� LBC’s R Funds net sales performance in 2005: more than doubled of the sales requirement

� Additional $ 8.3 M if cumulative net sales reach $ 350 M by the end of year 5

In millions of dollarsNet sale price 67.8$ Less:

Deferred income under the recovery clauses 26.2-$ Net assets sold, including the amount related to the purchase of LCFER's shares 29.5-$

12.0$ Transaction fees 2.3-$ Initial write-down of investments related to seed capital 4.4-$ Net gain before income taxes 5.4$ Income taxes 0.2-$ Gain on discontinued operations 5.2$ Recovery clauses 4.4$ Income from discontinued operations, net of income taxes 9.7$

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Partnership with the FTQ

Laurentian’s Bank Complicité Program(launched on October 12, 2005):

� Offered exclusively to the 550,000 FTQmembers and their families

� 3 types of products:� VISA Laurentian Bank Complicité card� 3 money-saving banking packages to

reduce fees related to daily bankingtransactions

� Homebuyers Program with differentoptions for future owners

“This is anhistorical moment...In the comingmonths, we willappeal to all our550,000 membersand their families tomake LaurentianBank their businessinstitution of choiceif they are currentlyclients of a non-unionized financialinstitution.”

Serge Cadieux, VPFTQ and Director forQuebec, Office andProfessionalEmployees Union

Annual shareholdersmeeting, March 2005